For setting up a business establishment in India, first
step is to incorporate a company whether a private limited or a public limited,
which includes:
ü
obtaining director identification number (DIN),
ü
obtaining digital signature certificate,
ü
reserving the company name with the Registrar of Companies (ROC),
ü
paying stamp duties
ü
filing all incorporation forms and documents and
ü
obtaining the certificate of incorporation.
Thereafter, it is required to get the other necessary
formalities done such as:
ü Company seal
ü Permanent Account Number (PAN).
Based on the nature of business, it may further be
required to obtain a
Tax Account Number (TAN) come taxes deducted at source
(TDS).
Subsequently, depending upon the nature of business additional
requirements may include
ü registration for Value Added tax (VAT),
ü registration with Employees' Provident
Fund Organization,
ü
registration for medical insurance (ESIC)
For incorporating a company in India,
there is a series of steps required for incorporating a private or public
limited company in India.
These steps work according to the guidelines provided by The Company’s Act,
1956.
1. The very first step of formation for incorporating a company
is to get the name of the company registered at the Registered of Companies
(ROC) in the territory of the company’s registered office. The company’s name
should not match any existing name. ROC at least takes a week from the date of
registration of the name to assure that the name does not exist before.
2. After the completion of this process, the company has to file
a Memorandum of Association and Articles of Association with ROC itself. For a
public company, the company’s name should end up with “Limited” and for a
private company; the company’s name should end up with “Private Ltd”.
3. After submitting the Memorandum of Association and Articles
of Association, ROC issues an incorporated certificate only after receiving a
mandatory registration fees.
4. After these steps, the next main step is to get the address
of the registered office. It is not mandatory for the registered office to be
the same building from where all the work is being carried out.
5. Foreign companies need to fill up a FNV-5 form with the
Reserve Bank of India to get
the permission to start the manufacturing and trading activities in India without
an Indian partner. Any
Indian or foreigner can be the director of a company in India. Any
person whether he/she is Indian or foreigner and any Indian company or foreign
company can be shareholder of an Indian company.
6. For incorporating a Public Company, a minimum of three
directors and seven shareholders are required and for incorporating Private
Company, a minimum of two directors and two shareholders are required.
7. After the registration and certification, each company needs
to designate an Auditor. He has a very important duty to perform in the
company. All the balance sheets, company’s documents and company’s meetings are
scrutinized by him.
8. Every company should have an account book and written records
of all the directors, shareholders and the employees. Account book takes care
of all income, including profits and losses and the records register takes care
of all the past and present work of the people associated with the company.
9. At last, each company should have a different logo, and a
stamp of that logo which is imprinted on each written record and each written
document of the company.
